I.R.D. tax-collection methods supported

Press, 29 July 1989, Page 2

I.R.D. tax-collection methods supported

By

OLIVER RIDDELL

in Wellington The tax-collecting methods of the Inland Revenue Department have received the broad endorsement of the International Monetary Fund. The I.M.F. report contains 55 detailed recommendations and follows a review of the department late last year. The report and comments on it by the Commissioner of Inland Revenue, Mr David Henry, have been released.

The review focused on three main areas: • The department’s - computer systems and its plan for future development. • The department’s structure at head, regional and district offices. • The programmes the department had developed and whether these were appropriate to the needs of the Government and of taxpayers. In summary, the I.M.F. said the review had occurred at a particularly difficult time for

the which had succeeded in implementing much of the Government’s extensive fiscal programmes over taxation and income maintenance. “Because of these pressures a great number of problems developed for the I.R.D-” i But the I.R.D. had devised a plan, with the help of outside consultants, to address its biggest problem — the lack of modern electronic data processing systems and solutions. The Minister of Revenue, Mr

Caygill, welcomed the report. The Government saw top quality management of the tax system as essential to get full value from the tax reforms it had instituted, he said. There were still areas for improvement and the Commissioner would be dealing with them. The I.R.D. now had Cabinet approval to redevelop its computer systems over the next five years and to introduce modern technology, Mr Caygill said.